Regional Healthcare Facility with annual spend of 30 Million Dirhams, generates organic annual cost savings of 20%, with incremental savings of 10% through Category Management implementation, Process Optimization and Strategic Solutions, Optimizing spend across multiple categories, by supplier engagement and consolidation

 

Background Scope

• Current purchase process was complex & time consuming

• Inconsistent and adhoc Purchase Pattern Analysis

• Numerous Item categories : Drugs & Medicines, Nutritional, Wound care/ Respiratory/ other consumables

• Inconsistent and unmonitored consumption pattern of consumables

• Large pool of suppliers for less quantities of purchase, resulting in more work & efforts

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We carried out the following activities :

• Consumption and Purchase patterns were analyzed

• Optimized Management Supplier Relationship strategy

• Strengthened relationship with vendors & principal companies for better offers

• Price benchmarking on the basis of last year price and available market price

• Volume consolidations and reclassification of items

• Quote analysis for arriving at negotiations pointers

• Vendor consolidation and engagements (Vendor Panel Formulation) for better savings & efficient processes

• Process optimization implementation in the key areas to drive higher savings & minimise operational hassles

 

Achieved organic annual cost savings of 20% over last year prices,

with incremental savings of 10% through Category Management

implementation, Process Optimization and Strategic Solutions

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